22 Mar 2018
Nine in 10 grandparents miss out on state pension boost
A study has found that nine out of every 10 grandparents are missing out on a mostly unknown tax credit that could boost their state pension by up to £230 a year.
The research, carried out by insurance firm Royal London, has found that almost 90,000 grandparents are unaware of this extra credit, which allows grandparents who look after their grandchild, in turn allowing the child’s parent to return to work, to claim the ‘Adult Specified Childcare Credit’.
Following a recent awareness campaign, the number of people claiming this benefit has risen seven-fold, with 9,486 applications for this credit in the year to September 2017. Despite this increase, overall take-up of the benefit remains low.
Steve Webb, director at Royal London, said:
“This National Insurance credit is a valuable right and it is good news that the numbers claiming have risen so dramatically in such a short space of time.
“But we believe that there are tens of thousands more grandparents who could be entitled to benefit and would encourage more of them to find out about the scheme and to make a claim.
“It is right and proper that when grandparents sacrifice their own working life to help a family member get back to work, they should not also damage their own state pension prospects”, he said.
The credit is only available to people of working age who are yet to start receiving the state pension, and any family member can make a claim if they look after a child under the age of 12, if the child’s parent or carer is working.